LIMPERG234_00311

290 APPLYING EFFICIENCY PBINCIPLES
ment and give him an appropriation and standard
allotment for it. See Article 129.
It may be possible to give him appropriations and
standard allotments on other indirect expenses. The
foreman ought to get the bulk of his efficiency reward
for such definite reductions of expenses. This will
probably be some form of commission on the amount
by which he reduces his actual expenses below their
respective appropriations.
Since fluctuation of production is likely to occur and
produce corresponding fluctuations of the appropria­tions
and allotments, it is convenient as soon as effi­ciency
rewards for the direct workers have been in­stalled,
to put the foreman's commissions on savings
in direct labor and direct material into the form of
percentages on efficiency rewards earned on direct
labor and direct materials by the direct workers of his
department, since these last will depend directly upon
the volume of production as well as upon the efficiency,
that is, they will depend upon the savings. A foreman
may also receive other special forms of efficiency re­ward.
An example of this is given in Article 303.
One should not tie himself down to any cut and dried
rules for the efficiency rewards of executives of the
grade of superintendents and foremen, either line or
staff, because their rewards should be worked out ac­cording
to circumstances, so as to induce the highest
efficiency in the case in hand.
However, on starting any form of efficiency reward
to such an executive, it is necessary to look ahead as
far as possible to all the efficiency rewards that he is
to have, in order to design them so that their total
amount will be reasonable and their proportions to
each other such as to produce efficient results.

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290 APPLYING EFFICIENCY PBINCIPLES
ment and give him an appropriation and standard
allotment for it. See Article 129.
It may be possible to give him appropriations and
standard allotments on other indirect expenses. The
foreman ought to get the bulk of his efficiency reward
for such definite reductions of expenses. This will
probably be some form of commission on the amount
by which he reduces his actual expenses below their
respective appropriations.
Since fluctuation of production is likely to occur and
produce corresponding fluctuations of the appropria­tions
and allotments, it is convenient as soon as effi­ciency
rewards for the direct workers have been in­stalled,
to put the foreman's commissions on savings
in direct labor and direct material into the form of
percentages on efficiency rewards earned on direct
labor and direct materials by the direct workers of his
department, since these last will depend directly upon
the volume of production as well as upon the efficiency,
that is, they will depend upon the savings. A foreman
may also receive other special forms of efficiency re­ward.
An example of this is given in Article 303.
One should not tie himself down to any cut and dried
rules for the efficiency rewards of executives of the
grade of superintendents and foremen, either line or
staff, because their rewards should be worked out ac­cording
to circumstances, so as to induce the highest
efficiency in the case in hand.
However, on starting any form of efficiency reward
to such an executive, it is necessary to look ahead as
far as possible to all the efficiency rewards that he is
to have, in order to design them so that their total
amount will be reasonable and their proportions to
each other such as to produce efficient results.